Certified Business Analysis Professional (CBAP) Practice Test 2026 – All-in-One Study Resource to Ace Your CBAP Exam!

Question: 1 / 815

What does the term 'management horizon' refer to in a business case?

It is the point in time when the solution will be completed.

It is the point in time for the solution to break-even on cost and begins earning a profit.

The term 'management horizon' refers specifically to the point in time for the solution to break-even on cost and begins earning a profit. This concept is crucial in the context of a business case as it indicates when the financial viability of the project becomes clear.

Understanding the management horizon helps stakeholders and decision-makers assess the long-term sustainability and profitability of a solution. They can evaluate the period required to recover the initial investments made in the project and identify when the solution will start generating a return.

This timeline is vital for strategic planning, as well as for aligning business expectations with financial realities. It supports informed decision-making regarding whether to proceed with, continue, or adjust a project based on its projected financial performance over time.

The other options speak to different aspects of project planning and deliverables but do not capture the essence of the 'management horizon' as accurately as this definition.

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It is the expected deliverables that will be beneficial for the organization.

It is the duration of each phase of the project until the solution earns a profit.

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